"Taking into consideration the decrease of gas prices it makes sense for the switching," a US-based coal trader said. While gas prices have a downward potential - with traders expecting the TTF front-month price to slide below the Eur40/MWh mark and stay low until the middle of second quarter or start of third quarter - coal prices have the potential to rebound. German 50% gas plants remain uncompetitive against modern 45%-efficient coal plants. To compare, the gap for corresponding prices reached an average of Eur26.7/MWh last month and Eur319.5/MWh in August, when European gas and power prices hit record highs. The gap between clean spark spreads (CSS) and clean dark spreads (CDS) has narrowed considerably in recent weeks, S&P Global data showed.įor instance, the gap between CSS for German front-month 50%-efficient gas plants and 45%-efficient coal plants stands at just Eur15.4/MWh so far in March. About 55% of installed gas-fired capacity in Germany - which came online between 20 - likely to have an efficiency of 55% or higher. In Germany, about 60% of installed hard coal capacity has an efficiency of 40% or lower, according to S&P Global. Moreover, CCGTs with a high efficiency of 59% will be competitive with newer 40%-efficient hard coal plants. will continue, based on current gas, coal and carbon forward prices through Q2-23 and Q3-23," Kernbichler said.Ĭoal-to-gas switching could ease as the market heads into Winter 2023, yet 55%-efficient gas-fired units will - based on current fuel switch price signals - still be able to replace older, 38%-efficient coal units in the merit order. Indeed, German THE hub gas prices have now fallen to a level where 55%-efficient gas plants can outcompete 40%-efficient hard coal units in the day-ahead market, according to S&P Global lead power analyst Sabrina Kernbichler. The last time coal-to-gas fuel switching was on the cards in the region was June 2021." "The gas industry has managed to significantly increase its market share in the very competitive power market," a Europe-based coal trader said.Ī US-based coal trader said: "Tumbling gas prices and a record rally for carbon have seen gas power plants in Europe become cheaper to run than coal since mid-February. These Companies Could Shine.Receive daily email alerts, subscriber notes & personalize your experience. Some investor protection advocates aren’t so sure. Gensler’s meme-stock reforms are meant to help retail traders. oil refiners looking at ‘record’ Q1 profits ahead of peak summer season ‘Gaslighters have two signature moves’: Are you being gaslighted at work? Here’s how to recognize the signs. Here’s where to get that kind of return on your savings now Just 7% of Americans with short-term savings are earning more than 4% interest. Would hiring a financial adviser be a smart move? But I can’t afford to buy a home, and am losing money when I invest. ‘My friends and family say I’m rich.’ I’m 26 and make $100,000 a year living in St. I have $113K in my 401(k) and no other savings, but I will get an early retirement package of 9 months salary. ‘2023 is the year of the Easter potato’: High egg prices prompt some to look for holiday alternative We are retired with ‘substantial’ pensions and very little debt - how much do I need in a ‘rainy day fund’? Washington's Asia Policy May Be Setting Itself Up for a Fall
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